Abstract: Tianjin Binhai New Area (TBNA) is a new economic zone in the seaside area of Tianjin. Developing TBNA is a great strategic decision of local macroeconomic development distribution. TBNA is consisting of five sub-areas. Tianjin Economic-Technological Development Area (TEDA) and Tianjin Port Free Trade Zone are core areas of TBNA with significant contributions in attracting foreign investment and promoting international trade. TBNA has grown up to be a "Head of Dragon" of local economy in Tianjin with massive state and foreign investments through seven years development, which offered as 34.4% GDP, 40% GOVI, 51.7% Total Export percentages to Tianjin in 2000. The great achievements of TBNA have caused Tianjin city undergoing dramatic restructuring towards remaking the city as a global city, moving up the urban hierarchy in China. In this paper, through the case study of TBNA, I reveal the trajectories of and factors underlying local development. Based on the relevant statistics during 1993-2000, I hold that local development is a quite complicated process in the period of transitional economy in China. The paper has shown that development process is influenced by a multitude of forces operating at global, national, and local levels. On one hand, the Chinese government still heavily regulates its domestic economy, and actively initiates development policies. Governments are playing a significant role in urban and regional development in China. The local government of Tianjin has been an active agent of local economic development by obtaining preferential policies from central government and implementing numerous local initiatives. The infusion of foreign investment is clearly related to the preferential policy provided to foreign investors. However, I maintain government policies alone do not adequately explain trajectories of local development. Local states are embedded in forces operating at local, national and global scales. There is a strong geographical foundation for the functioning of local state corporatism. Local development conditions or geographical foundations in particular provide the basis for the initiation and successful implementation of local government policies and the location choices of foreign investment. Local governments, in initiating local policies, must carefully study those opportunities and constraints. Competition and cooperation among cities in Bohai Rim have also strongly influenced on the development of TBNA.